Rs. 150 Bank Charge on Cash Transactions Explained In 10 Points
India’s leading private sector lender HDFC Bank has raised charges on cash transactions at bank branches, effective from March 1. An HDFC Bank official said that the charges on cash transactions at branches are being raised with an objective to promote digital payments.
Here are 10 things to know:
1) Savings and salary account customers of HDFC Bank will now have four free cash transactions (which include both cash deposit and withdrawal) per month over the counter at bank branches. From the fifth transaction onwards, the customers will have to pay a minimum of Rs. 150 per transaction (plus taxes and cess).
2) Earlier, HDFC Bank savings account customers were offered five free transactions and the sixth transaction was charged at Rs. 100.
3) HDFC Bank after December 30, 2016 reintroduced charges on cash transactions at branches after the deadline to deposit old currency notes ended. The charges were waived off after the government had announced a ban on high value currency notes on November 8.
4) According to the revised norms which came into effect from March 1, from non-home branch, HDFC Bank customers can deposit/withdraw up to Rs. 25,000 per day without any charge but any deposit/withdrawal from non-home branch above Rs. 25,000 will attract charge of Rs. 5 per thousand or Rs. 150 (plus taxes and cess), whichever is higher.
5) At the home branch of HDFC Bank, if the cumulative cash transactions (deposit/withdrawal) exceed Rs. 2 lakh, a transaction charge of Rs. 5 per thousand or Rs. 150 (plus taxes and cess) whichever is higher will be levied.
6) For example, if a customer withdraws Rs. 2 lakh from an account in four transactions and goes for another fifth transaction of Rs. 50,000 from the home branch, then the customer will have to pay a charge of Rs. 250. Thus, the charges apply only on the fifth transaction.
7) However, the charges for withdrawing money from automatic teller machines (ATMs) remain unchanged.
8) For senior citizens and minor accounts, the limit of Rs. 25,000 per day will be applicable but the accounts will not be charged.
9) India’s biggest private sector bank ICICI Bank had reintroduced the cash transaction charges at bank branches from January 1, 2017. There will be no charge for first four transactions a month at branches in home city while thereafter Rs. 5 per Rs. 1,000 would be charged thereafter subject to a minimum of Rs. 150. The third party limit is Rs. 50,000 per day.
10) Meanwhile, news agency Press Trust of India reported that another private sector lender Axis Bank has also started charging a minimum amount of Rs. 150 per transaction for cash deposits and withdrawals beyond four free transactions in a month.